Assignment about What are Macroeconomics?

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Course ID

MACROECONOMICS1
Table of Contents
Part A: Diagnostic Analysis.............................................................................................................2
Part B: Policy Brief..........................................................................................................................5
Subject:........................................................................................................................................5
Executive summary.....................................................................................................................5
Recommendations........................................................................................................................5
Economic rationale......................................................................................................................5
References........................................................................................................................................7

MACROECONOMICS2
Part A: Diagnostic Analysis
Name of the GDP indicator: Real GDP growth rate
Presentation
Figure 1: Trend in real GDP growth rate
Justification
Real GDP of a nation measures the monetary value of aggregate output that is adjusted
for inflation. By eliminating the impact of changes in price level, real GDP gives an accurate
measure of aggregate output (Heijdra 2017). Percentage change in real GDP termed as real GDP
growth rate is therefore a valid indicator of economic downturn or recession.
Identification of recession
Recession of an economy can be measured in terms of steady decrease in the economic
activity lasting for few months. One recessionary phase for Australia is identified between march
1982 to June 1983.Three other recessionary phase as identified from trend in real GDP growth
rate ranged from June 1990 to December 1991, December 2000 to June 2001 and from
December 2008 to September 2009.
Name of the CPI and Wage indicators: Year ended inflation rate (Consumer Price Index)
Presentation
Figure 2: Trend in inflation rate